Which of the following is true of a price level increase in an economy?
a. When the price level increases, the purchasing power of money increases
b. When the price level increases, the purchasing power of money decreases.
c. When the price level increases, the purchasing power of money remains unchanged.
d. When the price level increases, the purchasing power of money either increases or decreases, depending upon the size of the national debt.
e. When the price level increases, the purchasing power of money either increases or decreases, depending upon the level of government expenditures.
b
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To reduce pollution, economists generally prefer a corrective tax to a command-and-control policy because the same goals can be achieved but in an efficient manner with a corrective tax.
Answer the following statement true (T) or false (F)
Which of the following actions by the Fed would increase the money supply?
a. Reducing the required reserve ratio. b. None of the answers are correct. c. Selling government bonds in the open market. d. Increasing the discount rate.
Innovation and new ideas are rewarded in a nation with a traditional economy.
a. true b. false
?A(n) _____________ occurs when an individual or a group of people buy a? company's publicly traded stock mainly by using borrowed funds.
A. merger B. hostile takeover C. joint venture D. leveraged buyout E. acquisition